BigBear.ai Faces Securities Fraud Lawsuit After Financial Misstatements Trigger Stock Decline

Bleichmar Fonti & Auld LLP Files Lawsuit Against BigBear.ai Holdings, Inc.

On May 29, 2025, Bleichmar Fonti & Auld LLP, a prominent securities law firm, announced the filing of a lawsuit against BigBear.ai Holdings, Inc. (NYSE: BBAI) and certain senior executives. The suit alleges violations of federal securities laws related to the company’s financial disclosures. Investors in BigBear.ai are encouraged to seek more information and consider their legal options before the June 10, 2025 deadline to request appointment as lead plaintiff in the case.

The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia under the case Priewe v. BigBear.ai Holdings, Inc., et al., No. 25-cv-00623, charges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of shareholders who purchased BigBear.ai securities.

Background: BigBear.ai’s Alleged Accounting Misconduct

BigBear.ai operates as an AI-driven technology solutions provider, offering services in national security, supply chain management, and biometric identity solutions. The company went public through a SPAC transaction, merging with GigCapital4 Merger Sub Corporation and GigCapital4, Inc. Following this, BigBear.ai issued $200 million in unsecured convertible notes maturing December 15, 2026.

The lawsuit claims that BigBear.ai improperly accounted for these 2026 Convertible Notes, leading to misstatements in several previously issued financial statements. This alleged misconduct forms the basis for the securities fraud claims.

Impact on Stock Price Following Disclosure

On March 18, 2025, BigBear.ai announced a delay in filing its 2024 10-K report, revealing that financial statements dating back to fiscal year 2021 could no longer be relied upon and would require restatement. This announcement caused the stock to drop about 15%, from $3.49 to $2.97 per share.

One week later, on March 25, BigBear.ai filed the restated 2024 10-K. The revised statements accounted for the fair value of the 2026 Notes Conversion Option from December 7, 2021, with subsequent remeasurements. The filing also disclosed a material weakness in the company’s internal controls over financial reporting. Following this, the stock declined another 9%, closing at $3.19 per share on March 26.

Options for Investors

Investors who purchased BigBear.ai securities may have legal recourse. The firm offers representation on a contingency fee basis, meaning there are no upfront costs or fees unless the case is successful. Shareholders are not responsible for court costs or litigation expenses.

Interested parties can submit their information directly at BFA Law’s BigBear.ai case page or contact Ross Shikowitz at ross@bfalaw.com or 212-789-3619.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP focuses on securities class actions and shareholder litigation. The firm was ranked among the Top 5 plaintiff law firms by ISS SCAS in 2023. Its attorneys have received recognition as Titans of the Plaintiffs’ Bar by Law360 and as SuperLawyers by Thomson Reuters.

Recent notable recoveries include over $900 million from Tesla, Inc.’s Board of Directors and $420 million from Teva Pharmaceutical Industries Ltd. More information about the firm and its attorneys is available at bfalaw.com.